Net Asset Turnover Calculator

Formula

The formula to calculate the Net Asset Turnover is:

\[ NAT = \frac{R}{A} \]

Where:

$NAT$ is the Net Asset Turnover
$R$ is the revenue (dollars)
$A$ is the average net assets (dollars)

What is Net Asset Turnover?

Net asset turnover is a financial ratio that measures the efficiency of a company’s use of its net assets to generate revenue. It is calculated by dividing the company’s total revenue by its average net assets. A higher net asset turnover ratio indicates that the company is using its assets more efficiently to generate sales. This ratio is particularly useful for comparing the performance of companies within the same industry.

Example Calculation

Let's assume the following values:

Revenue (R) = $500,000
Average Net Assets (A) = $250,000

Using the formula:

\[ NAT = \frac{500000}{250000} = 2.00 \]

The Net Asset Turnover (NAT) is 2.00.